Monday, May 20, 2013

One simple - too simple? - graph to explain US economy's performance

The graph comes from Thomson Datastream via Derek Thompson of TheAtlantic.com - and it shows that the US economy's performance over the last five years was better than that of comparable developed countries: a shallower recession with a faster recovery. Thompson attributes this performance to the facts that:

(a) control our own currency and (b) used aggressive monetary policy to
save the banks and lower interest rates while running high deficits.